American Home Shield 2009 Annual Report Download - page 36

Table of Contents
Comparable Operating Performance does not include purchase accounting adjustments and option and restricted stock expense; the latter
exclusion may cause the overall compensation cost of the business to be understated.
Operating revenues and Comparable Operating Performance by operating segment are as follows:
Successor Predecessor
Year Ended Dec. 31,
Jul. 25, 2007 to
Dec. 31, 2007
Jan. 1, 2007 to
Jul. 24, 2007
(In thousands) 2009 2008
Operating Revenue:
TruGreen LawnCare $1,048,936 $1,094,730 $ 501,830 $ 597,147
TruGreen LandCare 262,194 316,306 169,741 242,154
Terminix 1,089,072 1,093,922 445,760 645,700
American Home Shield 630,251 588,039 209,661 331,361
ServiceMaster Clean 125,614 129,798 55,390 68,183
Other Operations and Headquarters 84,012 88,637 39,976 49,845
Total Operating Revenue $3,240,079 $3,311,432 $ 1,422,358 $ 1,934,390
Comparable Operating Performance:
TruGreen LawnCare $ 172,118 $ 184,504 $ 102,296 $ 84,208
TruGreen LandCare 15,628 13,300 1,483 965
Terminix 235,350 218,997 74,047 120,057
American Home Shield 107,397 88,467 41,528 63,432
ServiceMaster Clean 57,549 54,851 20,336 26,297
Other Operations and Headquarters (57,169) (54,220) (37,361) (86,574)
Total Comparable Operating Performance $ 530,873 $ 505,899 $ 202,329 $ 208,385
Memo: Items included in Comparable Operating Performance:
Restructuring charges and Merger related expenses(1) $ 26,876 $ 12,495 $ 26,815 $ 58,350
Management fee(2) $ 7,500 $ 2,000 $ 875 $ —
Memo: Items excluded from Comparable Operating
Performance
Comparable Operating Performance of InStar $ (270)$ (2,195) $ (6,382) $ (5,739)
Comparable Operating Performance of all other discontinued
operations (1,541) 1,980 (165) 326
Comparable Operating Performance of discontinued operations $ (1,811)$ (215) $ (6,547) $ (5,413)
Includes restructuring charges related to (i) a reorganization of field leadership and a restructuring of branch operations at TruGreen
LawnCare, (ii) a branch optimization project at Terminix, (iii) Fast Forward, (iv) the Company's consolidation of its corporate
headquarters into its operations support center in Memphis, Tennessee and the closing of its former headquarters in Downers Grove,
Illinois, and (v) organizational changes at TruGreen LandCare and Merger related charges.
Represents management and consulting fees payable to certain related parties. A management fee is payable to CD&R pursuant to a
consulting agreement under which CD&R provides the Company with on-going consulting and management advisory services in
exchange for an annual management fee of $6.25 million, which is payable quarterly. On July 30, 2009, the annual management fee
payable under the consulting agreement with CD&R was increased from $2.0 million to $6.25 million in order to align the fee structure
with current market rates. The full year management fee was applied in 2009.
(1)
(2)
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